News for the Hospitality Executive
PARSIPPANY, N.J., Sept. 14, 2012 -- Wyndham Worldwide (NYSE: WYN) today announced that its subsidiary, Wyndham Vacation Ownership (WVO), has acquired privately held Shell Vacations LLC (Shell) and its subsidiaries. Shell is one of the largest independent vacation ownership club and property management groups, serving approximately 115,000 members and 19 managed resorts in North America. The purchase price for the equity of Shell is approximately $102 million in cash. The acquisition also includes $153 million of debt, which is primarily related to consumer loan receivables.
Under the terms of the agreement, WVO assumes property management operations at 19 Shell resort locations in Hawaii, California, Arizona, Nevada, Oregon, Wisconsin, Texas, New Hampshire and Canada. WVO will now also operate Shell Vacations Club (SVC), a leading points-based reservation and exchange system featuring a wide variety of member benefits and travel options, and assumes management of all SVC marketing, sales and financial services activities.
"This tuck-in acquisition is immediately accretive to earnings and generates meaningful cash flow as well as a healthy rate of return. With strong fee-for-service revenues, this acquisition is consistent with our capital-light strategy," said Stephen P. Holmes, Chairman and CEO, Wyndham Worldwide.
"With a history that spans more than four decades, Shell Vacations is both a pioneer and a respected leader within the hospitality industry," stated Franz S. Hanning, President and CEO, Wyndham Vacation Ownership. "We look forward to building upon Shell's achievements and continuing the growth of its highly successful vacation club by pursuing the same formula of providing outstanding quality, value and customer care."
"We're excited to leverage the significant scale and expertise of WVO," said Shelly Ginsburg, Chairman and CEO, Shell Vacations. "We believe our strong commitment to owner and guest satisfaction is complemented by WVO's demonstrated strength in managing one of the most extensive and diversified timeshare resort portfolios."
ABOUT WYNDHAM WORLDWIDE
For more information about Wyndham Worldwide, please visit the Company's website at www.wyndhamworldwide.com.
ABOUT WYNDHAM VACATION OWNERSHIP
Vice President, Wyndham Vacation Ownership
Margo C. Happer
Senior Vice President, Investor Relations
Wyndham Worldwide Corporation
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